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Friday, May 18, 2012

Allow The Knife to Stick In The Ground

That's a quote from @FloridaTrader, "allow the knife to stick in the ground."   It's a very graphical and useful advice.  He means to not try to catch a falling knife, as when a stock is in a steep down trend.  For example, WYNN.

Look how many support levels it broke through?  I love many of his (possibly) southern expressions.  "Don't chase the dog unless you own a dog kennel."  LOL, another good one.  It's not right to chase short, and it's not advisable to buy and guess the bottom - unless you're day trading - so best just to sit on the side lines on stocks like this.

It would be interesting to see if the knife is ready to stick in the ground for WYNN...

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